Veradigm Acquires Koha Health, Bolstering Ambulatory and Musculoskeletal Services

In a significant move that marks a strategic expansion, Veradigm, a prominent player in healthcare IT, announced its acquisition of Koha Health, a New Hampshire-based firm specializing in revenue cycle management. This acquisition, details of which remain undisclosed, is set to enhance Veradigm’s prowess in ambulatory services and musculoskeletal care.

The deal arrives on the heels of Veradigm’s recent brush with potential delisting from Nasdaq, due to delayed financial report submissions to federal regulators. Notably, the company, previously known as Allscripts, managed to stave off delisting, contingent on meeting future reporting deadlines and other stipulated requirements.

Koha Health stands out with its focus on musculoskeletal care and orthopedic practices, making it a valuable addition to Veradigm’s portfolio. This acquisition not only broadens Veradigm’s specialty knowledge but also strengthens its capacity to seamlessly collaborate with various ambulatory healthcare providers and surgical centers, especially those utilizing multiple electronic health record systems.

Tom Langan, Veradigm’s President and Chief Commercial Officer, emphasized the significance of this acquisition. “Today’s announcement represents an exciting opportunity for Veradigm to scale our revenue cycle services portfolio by leveraging additional capabilities and subject matter expertise to better serve the needs of the market,” he stated.

Veradigm’s journey to this acquisition has not been without its challenges. The company faced a potential delisting from the Nasdaq stock exchange due to its failure to file its annual report for 2022 and quarterly reports for the first three quarters of 2023. These filing delays were attributed to internal control failures, including issues related to accounting practices and a specific software tool. However, Nasdaq’s recent decision to retain Veradigm on the exchange, provided it adheres to the reporting requirements by the end of February and achieves other interim milestones, comes as a reprieve.

In a bid to fortify its financial control environment and enhance financial reporting policies, Veradigm underwent significant leadership changes last December. These changes included the resignations of the former CEO and CFO, signaling a committed effort towards establishing more robust financial governance.

Veradigm’s acquisition of Koha Health signifies a strategic step forward in augmenting its service offerings and fortifying its market position. This move is a clear indicator of the company’s resilience and adaptability in the face of regulatory challenges, paving the way for continued growth and innovation in the healthcare IT sector.

Leave a Comment

Your email address will not be published. Required fields are marked *